A complying SMSF is entitled to deduct – from its assessable income – any losses or outgoings that are:
- incurred in gaining or producing assessable income
- necessarily incurred in carrying on a business for the purpose of gaining or producing such income.
Losses and outgoings relating to exempt current pension income are generally not deductible because they are incurred in earning exempt income. If the fund has both accumulation and pension members, the expense may need to be apportioned to determine the amount that the fund can deduct.
See also:A complying SMSF is entitled to deduct any losses or outgoings incurred in gaining assessable income or incurred in carrying on a business to gain assessable income. This includes auditor fees, supervisory levy, insurance premiums and interest.